tv Lou Dobbs Tonight FOX Business December 12, 2012 7:00pm-8:00pm EST
taxes and raise spending, we need to raisin come taxes for all politicians to 90% gross of their income. -- love it. we love hearing from you. send your e-mail to us. that is it to night's gerri willis report, thank you for joining us, have a great night, we'll see you tomorrow. lou: good evening, president obama working hard, to be president of all of the 47%. and big business is aligned with the president and his quest to raise taxes on everybody. here is the president today acknowledging that his promise
not to raise taxes on middle class will be nul and void on january 1st. the president in his own words confirming that tax hike, coming irrespective of the fiscal cliff outcome. >> taxes are going to go up one way or the other, the key is to make taxes go up and high-end individuals, i am confident that republicans would not hold middle class taxes hostage to try to protect tax cuts for high income individuals. lou: obamacare, guarantees taxes are going up. 5 new obam obamacare-based taxeo kick in next year. a 3.8% surtax on unearned income, and call chains and dividend 18.8%, and a new tax on
hospital care, and medical device manufacturersing' taxed 2.3% of the price of their products. americans get a tax deduction if their medical expenses exceed 7.5% of their total income that number rising to 10% for everyone under the age of 65. and government, for first time ever sending a limit on tax free flexible spending accounts, joint committee tax, estimates those 5 new provisions amount to $2 60 billion tax hike over next 7 years, president obama, avoid anything real negotiating on fiscal cliff issue, president doubles the amount of tax hikes he campaigned on when he unveiled his initial proposal,
then after weeks of negotiating with proxies in media, most recent offer cuts that number to $1.4 trillions. house speaker boehner told his caucus, both sides are not close on a deal to avoid the cliff, minority leader nancy pelosi ripping republican leadership from house floor in what can be described as a bizarre rant that ended with a compliment of the speaker. >> it really getting boring. it is smacks a little bit of nero, figure it out, we did. figure it out. then, go forward and continue to debate the issue. i believe he is a important of good intention, maybe that gets me into trouble my saying that. lou: to surprise of many in washington boehner appears to have support of more voters than anyone thought previously, a new fox poll shows 3 a 3 to 1
margin, voters believe by enacting mostly spending cuts is the best way to deal with the problem. president obama continue its push his ultimatum on higher taxes for wealthy, and republican leaders responding by warning their members to be prepared for christmas in washington because of the stalemate. and joining us now, congressman devon nunez, a member of house aways and means committee. speaker saying they are separated by serious gaps here, what are your thoughts? >> i came on this show two weeks ago, i told you then that president wanted to go cliff diving, that is what he wants to do. he is not serious about getting a deal, if he was so serious, he would not have met with john boehner sunday morning then go out 24 hours later on a campaign
stop to michigan railing about some middle class tax hike jarg onljargon he is using. he wants to go off the cliff,. lou: looking at that number. newest fox poll released a couple hours ago, that polls poe 5-- say 57% say that best way to deal with budget is with dedictions, and then, what we're seeing in these numbers is, if not direct support for the speaker, certainly enough support for the speaker and position on spending cuts that has to give the president some pause don't you think? >> i am worried about here that american people, really have not felt what a big tax increase is like. they have not felt the cuts that have to happen.
and we're really living off of borrows money, and the helicopters keep flying in and dropping the money, i am from the state of california, the state of california vottd to make -- it is the highest tacked taxed place on the planet, meanwhile, jobs and people are leaving california. we have to cut, people are not ready for it yet. >> what is ever ready for a big tax hike? we'll get a big tax hike on january 1st as i just reported. here is $2 70 billion in new taxes, they will hit middle class, working men and women. this is a game in which the president has succeeded in diverting national media from real issue. which is he, said he would not raise taxes on middle class, he will shove them down their throat on january 1st. i mean -- and the republicans
are not talking about it. congressman, why not? in we're trying to. that is why i'm on your show. also. lou: fire away. >> it is important, i want to split up the issues. so what happens on january 1st, people will feel it will be with payroll tax, and amt, alternative minimum tax, cut to medicare, and cuts to defense. that is for real, that happens. that is immediate. the rise in rates due to obamacare, and the bush tax cut expiring, those actually do not take effect, they will not owe them until 2014, i think that president thinks he has time. but, this is -- this is why it important i think, for us to tell the truth. and be grown ups, the president thinks in short-term, he can just continue to go out and campaign, and maybe in short-term republicans will take will blame. i'm ready to take the blame, i am going to tell the truth to my
constituents. lou: take the blame. that is an interesting eing expression. the fact is, his ultimatum is only -- the only decision taken that will result in this occurring, rather than a collective bargain heaed positi. i do not see where republicans should take any blame, why isn't your leadership, if you will, say, you go ahead, you own it you eat it? lou: i believe at the end of the day that is what we'll say. but for right now, lou we're still here, we're working, we're willing to meet with the president, we have yet to receive anybody other than that bogus plan that geithner came and showed us a few weeks ago.
for the most part of, we're here, we wanted make a deal, we're ready to deal but we have to have other people want to make a deal, and they don't want to. on january 1st things will change. lou: what if speaker boehner did this, just to have fun in midst of the dire nonsense, call negotiating, how about just saying, you know, we're going to do, president is putting, out a paltry 1 for 2 spends cuts, why not split, say we'll do bowles simpson. it is the one your commission recommendinged and make him eat that, i do not understand why there isn't more stuff happening, have you a president who is running scared and trying to play his game, i love the fact he said he does not bluff, i think he as bluff right up to the edge. >> he believes at the end of the
day republicans will cave, and take an increase, we'll see what happens, i am not up for that i don't know many of my colleagues that are up for that. lou: how many people do you think they would get interested -- what do you think that political impact would be on president if you advocates s simpson-bowles. >> we did. lou: i said no, the speaker, puts it on the table and said we're doing it it is your move. >> a tax has to start in the house, if we send a tax bill to senate they will amend it. and they will send some garbage back to us, and try to put the blame on us, that is -- a bit of proceeprocedural issues that wee dealing with. lou: i did not say put it in a bill. i said put it on the table. a different statement.
>> if we pass anything that and i think what they would like for us to do pass something, they can amend, and then right before christmas eve or before new year's eve they will send it back to house of representatives, and say take it or leave it we've seen that before. lou: a very simple deal. you know you can leave town too, you can say no, you can say no. nancy reagan made it famous for another addicted group. just say no. congressman, good to have you. >> thank you, lou. lou: more on fiscal cliff, and fact that nobody plan achieves real deficit reduction, we'll take up that. stay with us. >> someone in dc is focussed on job, fed chairman ben bernanke pledging more easy money to cut the unemployment rate. what does the economy look like in the new year, wells fargo chief economist, john silvio
lou: chairman ben bernanke made a historic move sitting unemployment rate as a target for monetary policy. we'll be taking that up, talking with wells fargo chief economist john silv sylvia in moments, and announcing they will spend -- a month buying mortgage-backed security. what the market expected and stocks rallied a bit on the announcement, a little. then ben bernanke talked about the fiscal cliff that ended that rally, stocks coming off their
highs, index, swung 102 points over second, and s&p finished where it began, nascar -- nazdaq down over 8 points, and trading on big board, busiest in the week, walmart a big mover, dropping retailer part of an overall weak group, best answer, profit taking with the sell-off walmart up, 18 -- almost 19ers in on the year, 10 year, yield rising to 1.69%, and crude market, up, joining me now, wells fargo chief economist, john silviia, 6.5% is target for fed chairman and the fed, that is the unemployment rate they want to hit, i have never heard of the fed doing this before. have you? >> no, this is -- there is a danger for fed being so specific. in a particular number, what we've seen, in the last two
years, is that the unemployment rate has dropped, for whatever reason, by a 1% each year, that means 7. searc 7 we could be 6.n one year, is that is far ahead of between 15 -- the 2015 in the marketplace. lou: terrible thing about that is and would be, it would be the result of more people leaving the labor force, rather than more jobs, and we need literally millions of those jobs to be created. so, the program, the mortgage-backed program staying in place, and 45 million of treasury ire a month, your assessment of the impact there? what will it mean to the economy and the markets? >> well the basic change that we see, is in compared to operation
twist, now fed is a net buyer of treasures, their balance sheet will increase about a trillion dollars over the next year that is very much unchartered waters, but it means more liquidity in the system, and as president lacker -- said, you know this threatens our inflation credibility for fed in general. this is a little trick here. lou: threatens it or throws it out the window, fed has said to hell with inflation, they are acting like it is 2009 all over. >> what bothered treasury market. and the commodities market and the dollar, was all of a sudden we went from 2% inflation target to 2.5%, and like wait a minute, we just upped our inflation
number? that changed market expectation. i think that fed, and chairman bernanke in his question and answer period, tried to indicate, 2% is our long run target but we'll tolerate 2.5, but in world of pog ticks and economy -- in the world of politics and economics is is going to be 2.5%. >> anding in suggesting otherwise, i think getting a little ambiguous. to say the least, that is the direct of this market. i'm amazed that this market is staying as high as it is. in the face of the ridiculous negotiations, and this ridiculous ultimatum on part of the president on raising taxes and his insisting that republicans cave in and bend to his will like he is some sort of imperial president, -- oh, wait, maybe he is -- this is madness.
>> this is interesting your lead in was good in a sense that -- >> thank you. >> on once bernanke talked about the possibility of a fiscal cliff, the market is selling off. i think that just discounting any probability we have a fiscal cliff, if we do, and negotiations brick down, then market i think will be way overpriced for the very difficult economy. we'll see in the first half of next year. lou: we might see it before the end of the year, if it is clear, this may be part of the game, they try to keep in am pickous to whether or not there will be a dial, that would be a slick portion of this negotiation. i do not know what to make of it. i do think this republicans are now incentivized to go over the
cliff, and seek sequest raising sequestration in force. it gives republicans want they want, two-for-one spending cuts to tax hikes it gets intresting. >> it is, some of the commentary i've seen, suggestions that the president i talking about more x increases than spending cuts, that is -- >> 2 to 1. >> yeah contrary to the original agreement. lou: well imagine that. president turning things on its head, john silvio thank you. >> thank you. lou: and straightening us out. looking now at "new york times" bestseller list, i thought this week was really, newsworthy. topping hard cover nonfix list is a -- nonfiction list is a book called killing kennedy, by a guy named bill oriley, in
second place, thomas jefferson by thoma tom meachum, and then t o'reilly again, killing lincoln. not bad. up next, fighting intensifies in syria. continuing to back assad, and the list of suspicious dealings at hsbc is rising, one whistle lower tells us how he was silenced and fired for reporting what was criminal activity at hsbc, by the way $1.9 billion in finds, and nobody go going to jail, curious, huh? obama justice, we're coming right back.
[ engine rev] ♪ [ male announcer ] oh what fun it is to ride. get the mercedes-benz on your wish list at the winter event going on now through december 31st. [ santa ] ho, ho, ho! [ male announcer ] lease a 2013 e350 for $579 a month at your local mercedes-benz dealer. gives you 1% cash back on all purchases, plus a 50% annual bonus.
and everyone...but her likes 50% more cash. but i'm upping my game. do you want a candy cane? yes! do you want the puppy? s! do you want a tricycle? yes! do you want 50 percent more cash? no! ♪ festive. [ male announcer ] the capital one cash rewards card gives you 1% cash back on every purchase plus a 50% annual bonus on the cash you earn. it's the card for people who ke more cash. what's in your wallet?
lou: the civil war in syria escalating. meanwhile, u.s. is officially recognizing syria's main opposition group, as country'slyity matt representative. fox news national contract with correspondent with the latest. >> reporter: as opposition forces advance toward diagram damascus, president obama confirmed in an interview with abc news some officials have u.s. backing. >> is now inclusive enough, is reflective and representative enough of syrian population we occur them the -- consider them the legitimate representative of the syrian people in opposition to the assad regime. >> reporter: u.s. officials
confirm that this week's fighting showed that the conflict is escalating. >> we're seeing use of another weapon, a barrel bomb, that is contains flammable materials, a napalm-like thing. >> reporter: the move to recognize elements of the syrian opposition, brought to a rebuke from russian foreign minister whose government has backed negotiation between the syrian president al-assad and the opposition, given u.s. involvement in libya and iraq to bring down their dictators, analysts predict big divisions between the white house and the russians. >> they are determined to preserve their ties to -- >> reporter: while administration downplays the leadership role this leader shows gee add hists, --
jihaddists on the ground in syria, this man said he wants to establish adding that afghanistan taliban is an exam told follow. >> opposition has to take steps to isolate extremist. and those who might have a different agenda. >> leader of syria opposition is pushing u.s. to reconsider this week's decision to label a milltivity islammers group -- u.s. said this group, is a front for al qaeda in iraq. >> recognize by the opposition. >> correct and this really goes to the problem in syria, one special operation source said, that it amounts to 10,000 motion10,000 hugoadish. gerri: thank you.
thank you,. lou: growing outrage overdraft of newest army handbook that appears blame american troops for so-called insider attack against them in afghanistan. a portion of the draft handbook for our forces in afghanistan reads, many of the confrontations occur because of coalition ignorance of or lack of empathy for muslim and or afghan cultural norms resulting in a violent reaction from the afghan security force member. handbook lists quote, taboo 1 very saying topics that our soldiers should avoid, making derogatory entertainments about the taliban, who they are trying to kill, advocating women's right, or criticism of pedo phil yeh. a spokesman did you not approve
of the manuel and will not endorse it. lou: president obama stamping his foot, going all grinch, and santa is getting into the act. >> coal is a lot heavier than toys. lou: the a-team to tell us if g.o.p. will give in on obama ultimatum and biggest tax hikes in history. from union protesters turned thugs over michigan's new pro worker law, but guess which part of the story the liberal mainstream television media left out? and hsbc admits to being the bank of record for drug cartels, african dictators and middle eastern terrorists, tonight you meet the former employee who tried to stop hsbc's illegal
lou: hsbc facing more legal problems, a whistle-blower who worked as a former vice president, and senior business manager is suing the largest bank. second largest in world for $10 million, john cruz, said he was wrongfully terminated after he reported on suspected fraudulent accounts used for money laundering in 2009. yesterday, hsbc agreed to pay $1.9 billion fine for transferring billions of dollars for nations including iran, and enabling mexican drug cartels to move their money illegally, to put the fine in perspective, hsbc made 16.8 billion in
profits last yyar, joining us now ision cruz, thank you. for joining us. i want to turn to the fine, and we find out from lanny breuer. the assistance attorney general, that there will be no individual prosecutions even though they have the evidence of all of this wrong doing, and working hsbc with terrorists, nations sponsors terrorists, and the mexican drug cartels, your reaction? >> i think this is wrong. i believe that executives need to be responsible. lou: in your judgment, you know the bank, why would there not be an individual prosecution for what has taken place at this second largest bank in the
world? >> i don't know why there is no individual prosecution with the evidence they have, that is the question we need to be asking law enforcement. lou: the other question, why has it taken so long for you to move forward to get a response from the bank, and to be treated fairly here as a whistle-blower, are you not protected under whistle lower laws. >> i would think i would be protected under the whistle-blower laws, the laws need to be more pronounced to the companiry, and increased more to protect the whistle-blowers we need them. lou: did you think you would be protected? >> i did not know. but i know that i needed to do something 92 this -- your case goes back to 2009. you takeover a number of branches, for hsbc in the new york area, you go out to drum up more business, tell us what you
find as you went out to the places of business on your list of customer accounts, tell us what you found. >> well, i found that businesses did not exist. actual physical locations, did not exist, actual owners did not exist, it was a paper company i would say that was withins bank computer system showing transactions but the businesses did not exist. lou: you would go out to drum up or business or offer service, to assume that the ark coun the acs secure with your bank, what do you find? >> some companies i found were empty lots, some companies did not exist in the building they were supposed to be in some did not exist anywhere to be found. lou: when you got back to the
big bank, what did you tell your boss? the big shots? >> i told my bosses, my superiors what i found, i reported it as suspicious activity. lou: you thought it was what? did you have a sense it was money laundering? >> i did not know, my job is to manage accounts and see what is there, if it not there, i reported it, i wanted it out of my book of business there was nothing to manage, they were to handle it in a legal matter. lou: you became frustrated, what your reaction of the managers? >> well, my manager write me up for -- wrote me up for poor job performance, for not handling accounts and not doing my job. lou: then you are fired in 2010. you -- >> i was fired in 2010 after reporting to senior security
within the bank. lou: and to law enforcement authorities. >> yes, i did go to law enforcement. i let the bank know i was going to law enforcement through e-mails. >> result of that is at least you played your part in what we saw transpire yesterday, 1.9 billion in finds, but no prosecution. >> correct. lou: your lawsuit is moving forward, how long before you think there will be a resolution? >> i do not know. i do not know how long the court system will take. it has been a few years now just in the making, we filed the law the yesterday, we'll see what happens shortly. bank has so many days to respond. lou: john cruz thank you, we wish you the best of luck. >> thank you. lou: up next, unions supporting, protesters, and some of them a few of them resort to i think
that is physical is that a left cross? something you might have missed if you were not watching fox news, that story is next. and coming up tomorrow, fox news, politics digital politic senator chris stirewalt, former u.s. ambassador to united nations, john bolton, and monica crowley among our guests you don't want to miss them. an over confident president perhaps? republicans, self esteem issues and a reserves house speaker, the a-team will bring a little piece to it all, next.
the left wing coalition, in this country in the negative light. if you were watching the big three networks you would not3 know about the assault. i don't top use the word violence, abc, and cbs and nbc all covered the right-to-work protests, only one hinted there may have been physicality. >> they voice anger. >> protester swarm the governor's office building. >> anger boiling over. >> officers turning to pepper
spray to control the crowd at least 10,000 deep. >> if the victim was anybody but a fox news contributor, well, i don't top go there i am sure it would have meant nothing to them. a federal judge today sentencing a phoenix man to 5 years in prison for buying guns that mexican drug cartel used to murder border patrol age brian terry, 25-year-old jamie avila is one of 20 straw purchasers. federal authorities allowed him to walk away from a gun shop in arizona with weapons rather than arrest him. but so far only account built that's government has south out in this are resignations or retirements for the officers behind the operation. >> up next, fiscal cliff negotiations, inching toward a
deal? maybe, a deal that some conservatives say could cost speaker boehner his job. the a-team coming up next. twins. i didn't see them coming. i have obligations. cute obligations, but obligatio. i need to rethinthe core of my portfolio what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. hares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses.
sticking point is cuts, democrats are not willing to put forward enough cuts to get republicans to say what they promised they would do, at least consider the rate going up. lou: this -- president comes with a dial, most recent counter offer, offer, i don't know why we are with him. has $2 of tax hikes for every well 70-cents of -- >> imaginary cuts. i suggestion that john boehner get a huge banner and wrap it around the capitol, "it's the spending, stupid." >> the truth is that tax receipts have risen, revenue for federal government has risen by 26%.
210, 2010, and 2011, there is room to perhaps give there. but, i have to ask you, am saying now. i was going to say, i think we're being gamed in a different way. i am now in school that believes this president doesn't to go over the cliff, also, i believe that republicans are now incentivized to go over the cliff, because they get two-for-one spending cuts and i believe that president is maintaining am bi ambiguity so s don't reaction. >> i believe there is a substantial truth, simply, obama, why should he deal, he won the election, he told us that. lou: well, hell he is president not emperor. >> check with him. even if we go over the cliff, he
gets more revenue than he does if he does a deal, and he blames the republicans, and looking at polls today, by 2 to 1 they blame the republicans 92 let me how is poll that shows you, main figure in any future calculation here. in fact is we're going to look at that a quick break but this -- i will show you doug schoan, is support for john boehner for republican view, and a president who is close to using up his political capital on the fiscal cliff, day with us, we'll show you the evidence. it's tt time o. time for citi price rewind. because your daughter really wants that pink castle thing. and y realldon't want to pay more than you have to. only citi price rewind automatically searches for the lowest price. and if it findone, you get refunded the difference. just use your citi card and register your purchase online. have a super sparkly day! ok.
[ male announcer ] now all youeed is a magic carriage. citi price rewind. start saving at citi.com/pricerewind. i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. yoknow we've been open all night. is this a trick to get my spot? [ male announcer ] break from the holiday stress. se on ground shipping at fedex office.
only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relieving the pain quickly. try fast, long lasting gavisn®. ♪ lou: back with the a-team, and look at the poll i referenced today, fox news poll, showing that those folks surveyed believe that mostly spending cuts are the best solution to the deficit, 57% to those who
think mostly tax increases would actually be effective, 20%. i mean, that's a big deal. >> right, right. well, look, the american people are smart. they know the problem is b -- is spending. there's another poll, the "wall street journal" has a poll showing 65% say they want a deal, they want compromise, a deal that involves some tax increases and trends to social security and medicare. the public is way ahead of the politicians. lou: grabbing the third rail with both hands. >> really. the public is made up of adults who understands the seriousness of the problem, and it's washington who does not understand p problem. lou: doesn't understand, and those involved, it's peculiar to me. the democrats like nancy pelosi, susan, saying that, you know, republicans don't get it. they are fiddling while rome burns. >> here's the problem with the
polls you mentioned. that poll is interesting and instructive, but the poll that republicans are going to pay attention to is not the one you cited. the one poll -- the poll the republicans pay attention to is the one that blames them. actually, there's several that pin it on republicans saying the public thinks that boehner's doing the worst job. if they are paying attention to that lou, that could have more influence on the outcome. lou: i accept everything but the reading of their minds and ask you -- >> i can actually read their minds. lou: as always, i bow to superpowers, but the fact is i don't understand how the republicans over the course of this entire episode, and i will call it that, an incident, i guess, on the first of january, but why they have not developedded a message and a strategy and a response because they are an immensely powerful position. >> lou, you just backed up my whole argument because they are paying attention to the other polls, and they are panicking.
they are not calmly laying out a plan or an argument for the american people for why their plan is better. they talk about that, but what they do behind closed doors is get all jittery about poll numbers that show the g.o.p. will be to blame at the end, and that k i think -- that, i think, is what's governing the republican party right now. >> i spoke to a senior before the election, and i said what you said. do you have a message or strategy, a plan? no. why not? well, the president wins these arguments. i said, well why don't you decide to stay and fight. he said, well, we'll make it up as we go along. if that's what passes for leadership in this country, this is very, very sad. lou: a great rallying, point, michael, is this is the obama ultimatum. he's going to eat it. we, as republicans, will not be treated this way. it's a matter of constitutionality, the integrity of the government, the balance of powers. we're standing up for america. i mean, you could build a heck
of a story saying you're going to defie an imperial president with his -- spit while you say it, ultimate mate -- ultimatum. >> the republicans can say we came up with the compromise. we did the thing we didn't want to do offering tax increases, whether it's deduction closing or rate hikes, so the republicans have clearly moved, and i think that somehow they got to show that to the public and that it is spending that the democrats will not come back with. >> one other issues neither side talked about, the central issue in america, jobs, growth, stimulating a more abun adapt -- abundant economy. bottom line, both sides missed it. lou: missed it, and frankly, an introduction to a head wind of $260 billion taxes because of obamacare, and then the fiscal cliff. susan, thank you very much. we appreciate it, michael. thank you, doug. great to have you with us. now for your comments,